About Me

Sep 26, 2011

A ACCEPTANCEThe act of accepting by an authorized representative; an indication of a willingness to pay; the assumption of a legal obligation by a party to the terms and conditions of a contract. ACQUISITIONThe act of acquiring goods and services (including construction) for the use of an activity through purchase, rent, or lease. Includes the establishment of needs, description of requirements, selection of procurement method, selection of sources, solicitation of procurement, solicitation for offers, award of contract, financing, contract administration. ADDENDUMAn addition or supplement to a document; e.g., items or information added to a procurement document or to a contract in place. AGREEMENTA duly executed and legally binding contract; the act of agreeing. AMENDMENT/CHANGE ORDERA written modification to a contract or purchase order or other agreements.

B BEST VALUEA result intended in the acquisition of all goods and services. Price must be one of the evaluation criteria when acquiring goods and services. Other evaluation criteria may include, but are not limited to environmental considerations, quality, and vendor performance. BLANKET ORDER(FRAME CONTRACT)A contract under which a vendor agrees to provide goods or services on a purchase-on-demand basis. The contract generally establishes prices, terms, conditions and the period covered (no quantities are specified); shipments are to be made as required by the purchaser. "BRAND NAME OR EQUAL" SPECIFICATIONA specification that uses one or more manufacturers brand names or catalog numbers to describe the standards of quality, performance and other characteristics needed to meet the requirements of a solicitation and provide for the submission of equivalent products.

C COMMODITYA transportable article of trade or commerce that can be bartered or sold. CONSIDERATIONSomething of value given or done as recompense that is exchanged by two parties; that which binds a contract. CONTRACTAny written instrument or electronic document containing the elements of offer, acceptance, and consideration to which an agency is a party. CONTRACT ADMINISTRATIONThe management of all actions after the award of a contract that must be taken to assure compliance with the contract; e.g., timely delivery, acceptance, payment, closing contract, etc. CONTRACTORA person/company who agrees to furnish goods or services for a certain price; may be a prime contractor or subcontractor. (COOP)ERATIVE PURCHASINGThe combining of requirements of two or more units to obtain the benefits of volume purchases and/or reduction in administrative expenses.

D DEALER, JOBBER OR DISTRIBUTORA business that maintains a store, warehouse, or other establishment in which a line or lines of products are kept in inventory and are sold to the public on a wholesale or retail basis. DELIVERYThe formal handing over of property; the transfer of possession, such as by carrier to purchaser. DESIGN SPECIFICATIONA specification setting forth the required characteristics to be considered for award of contract, including sufficient detail to show how the product/service is to be manufactured/provided. DESTINATIONThe place to which a shipment is consigned. DROP SHIPMENTMerchandise which is shipped by a manufacturer directly to a customer in response to the seller who collects orders but does not maintain an inventory.

EEMERGENCY ACQUISITIONA threat to public health, welfare, or safety that threatens the functioning of government, the protection of property or the health or safety of people. ENVIRONMENTALLY PREFERABLE PRODUCT (EPP)A product or service that has a lesser or reduced impact on human health and the environment when compared with competing products or services that serve the same purpose. Such products or services may include, but are not limited to those which contain recycled content, minimize waste, conserve energy or water, and reduce the amount of toxics either disposed of or consumed. EQUAL OR APPROVED EQUALUsed to indicate that an item may be substituted for a required item if it is equal in quality, performance and other characteristics. ESCALATION CLAUSEA contract provision which permits the adjustment of contract prices by an amount or percent if certain specified contingencies occur, such as changes in the vendor's raw material or labor costs. EVALUATION OF RESPONSESThe examination of responses after opening to determine the vendor's responsibility, responsiveness to requirements, and other characteristics of the solicitation relating to the award.

F FISCAL YEARThe 12 months between one annual settlement of financial accounts and the next; a term used for budgeting, etc. FORMAL SOLICITATIONA solicitation which requires a sealed response.

I INFORMAL SOLICITATIONA solicitation which does not require a sealed response. INSURANCEA contract between an insurance company and a person or group which provides for a money payment in case of covered loss, accident or death. INVOICEA list of goods or services sent to a purchaser showing information including prices, quantities and shipping charges for payment.

J JOINT VENTUREThe temporary association of two or more businesses to secure and fulfill a procurement bid award.

L LEAD TIMEThe time that it would take a supplier to deliver the goods after receipt of order. LEASEA contract conveying from one entity to another the use of real or personal property for a designated period of time in return for payment or other consideration. LESSEEOne to whom a lease is granted. LESSOROne who grants a lease. LIFE CYCLE COSTINGA procurement evaluation technique which determines the total cost of acquisition, operation, maintaining and disposal of the items acquired; the lowest ownership cost during the time the item is in use. LINE ITEMAn item of supply or service specified in a solicitation for which the vendor must specify a separate price. LIST PRICEThe price of an article published in a catalog, advertisement or printed list from which discounts, if any, may be subtracted. LOWEST RESPONSIBLE VENDORThe vendor with the lowest price whose past performance, reputation and financial capability is deemed acceptable.

M MANDATORYRequired by the order stipulated, e.g., a specification or a specific description that may not be waived. MANUFACTURERA business that makes or processes raw materials into a finished product. MARKETThe aggregate forces (including economics) at work in trade and commerce in a specific service or commodity. To sell, analyze, advertise, package, etc. MATERIALS MANAGEMENTEmbraces all functions of acquisition, standards, quality control and surplus property management. MULTIPLE AWARDContracts awarded to more than one supplier for comparable supplies and services. Awards are made for the same generic types of items at various prices.

N NEGOTIATIONRequests for proposals are sometimes used as a starting point for negotiations to establish a contract. RFPs generally include more than just price considerations. This method is especially applicable when dealing with a single source manufacturer. NET PRICEPrice after all discounts, rebates, etc., have been allowed. NO BIDA response to a solicitation for bids stating that respondent does not wish to submit an offer. It usually operates as a procedure consideration to prevent suspension from the vendors list for failure to submit a response.

O OPTION TO EXTEND/RENEWA provision (or exercise of a provision) which allows a continuance of the contract for an additional time according to permissible contractual conditions.

PPACKING LISTA document which itemizes in detail the contents of a particular package or shipment. PARTIAL PAYMENTThe payment authorized in a contract upon delivery of one or more units called for under the contract or upon completion of one or more distinct items of service called for thereunder. PER DIEMBy the day. PERFORMANCE BONDA contract of guarantee, executed subsequent to award by a successful vendor to protect the buyer from loss due to the vendor's inability to complete the contract as agreed. PERFORMANCE SPECIFICATIONA specification setting forth performance requirements determined necessary for the item involved to perform and last as required. POINT OF ORIGIN(shipping point)The location where a shipment is received by a transportation line from the shipper. PREFERENCEAn advantage in consideration for award for a contract granted to a vendor by reason of the vendor's residence, business location, or business classifications (e.g., minority, small business). PREQUALIFICATION OF VENDORSThe screening of potential vendors in which such factors as financial capability, reputation and management are considered when developing a list of qualified vendors. PRICEThe amount of money that will purchase a definite weight or other measure of a commodity. PRICE AGREEMENTA contractual agreement in which a purchaser contracts with a vendor to provide the purchaser's requirements at a predetermined price. Usually involves a minimum number of units, orders placed directly with the vendor by the purchase, and limited duration of the contract. See Blanket Order and Requirements Contract. PRICE FIXINGAgreement among competing vendors to sell at the same price. PROCUREMENTThe combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, store keeping, and salvage and disposal operations. PROPRIETARYThe only items that can perform a function and satisfy a need. This should not be confused with "single source." An item can be proprietary and yet available from more than one source. For example, if you need a camera lens for a Nikon camera, the only lens that will fit is a Nikon lens, thus, this lens is "proprietary." However, the Nikon lens is available from more than one source, thus, it is not single source. PUBLIC PURCHASINGThe process of obtaining goods and services for public purpose following procedures implemented to protect public funds from being expended extravagantly or capriciously. PURCHASE MANUALA document that stipulates rules and prescribes procedures for purchasing with suppliers and other departments. PURCHASE ORDERThe signed written acceptance of the offer from the vendor. A purchase order serves as the legal and binding contract between both parties.

Q QUALIFIED VENDOR/RESPONSIBLE VENDORA vendor determined by a buying organization to meet minimum set standards of business competence, reputation, financial ability and product quality for placement on the vendor list. QUALIFIED PRODUCTS LIST (QPL)A list of products that, because of the length of time required for test and evaluation, are tested in advance of procurement to determine which suppliers comply with the specification requirements. Also referred to as an "approved brands list." QUALITYThe composite of material attributes, including performance features and characteristic, of a product or service to satisfy a given need. QUANTITYAmount or number. QUANTITY DISCOUNTA reduction in the unit price offered for large volume contracts.

R RENTA rental contract giving the right to use real estate or property for a specified time in return for rent or other compensation. REQUEST FOR BID (RFB)A solicitation in which the terms, conditions, and specifications are described and responses are not subject to negotiation. REQUEST FOR PROPOSAL (RFP)A solicitation in which it is not advantageous to set forth all the actual, detailed requirements at the time of solicitation and responses are subject to negotiation. Price must be a factor in the award but not the sole factor. REQUISITIONAn internal document that a functional department (stores, maintenance, production, etc.) sends to the purchasing department containing details of materials to meet its needs, replenish stocks or obtain materials for specific jobs or contracts. RESPONDEROne who submits a response to a solicitation document. RESPONSEThe offer received from a vendor in response to a solicitation. A response includes submissions commonly referred to as "offers," "bids," "quotes," or "proposals."

S SEALEDA method determined by the commissioner to prevent the contents being revealed or known before the deadline for submission of responses. SERVICESUnless otherwise indicated, both professional or technical services and service performed under a service contract. SINGLE SOURCEAn acquisition where, after a search, only one supplier is determined to be reasonably available for the required product, service or construction item. SOLICITATIONThe process used to communicate procurement requirements and to request responses from interested vendors. A solicitation may be, but is not limited to a request for bid and request for proposal. SPECIFICATIONA concise statement of a set of requirements to be satisfied by a product, material or process that indicates whenever appropriate the procedures to determine whether the requirements are satisfied. As far as practicable, it is desirable that the requirements are expressed numerically in terms of appropriate units, together with their limits. A specification may be a standard, a part of a standard, or independent of a standard. STANDARDAn item's characteristic or set of characteristics generally accepted by the manufacturers and users of the item as a required characteristic for all such items. STANDARDIZATIONThe process of defining and applying the conditions necessary to ensure that a given range of requirements can normally be met, with a minimum of variety, in a reproducible and economic manner based on the best current techniques.

T TABULATION OF RESPONSESThe recording of responses for the purposes of comparison, analysis and record keeping. TERMS AND CONDITIONSA phrase generally applied to the rules under which all bids must be submitted and the stipulations included in most purchase contracts; often published by the purchasing authorities for the information of all potential vendors.

UUNIT PRICEThe price of a selected unit of a good or service (e.g., pound, labor hours, etc.).

V VALUE ANALYSISAn organized effort directed at analyzing the function of systems, products, specifications, standards, practices, and procedures for the purpose of satisfying the required function at the lowest total cost of effective ownership consistent with the requirements for performance, reliability, quality and maintainability. VENDORSomeone who sells something; a "seller." VENDORS LISTA list of names and addresses of suppliers from whom bids, proposals and quotations might be expected. The list, maintained by the purchasing office, should include all suppliers who have expressed interest in doing business with the company.

W WARRANTYThe representation, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. Not to be confused with "guarantee," which means a contract or promise by one person to answer for the performance of another person.